Tesla Vitality turned out to be the darkish horse of the corporate’s third-quarter outcomes. CEO Elon Musk even famous in the course of the Q3 2023 earnings name that Tesla’s battery storage enterprise is changing into one of many firm’s most worthwhile divisions.
The Q3 2023 Replace Letter revealed that Tesla’s battery storage deployments elevated by 90% year-over-year to 4.0 GWh. This represented the best quarterly deployment of battery storage techniques so far. Tesla famous that this progress was made potential in no small half because of the ramp of the Megafactory in Lathrop, California. The ability produces the Megapack battery.
This milestone was reiterated by Musk in the course of the Q3 2023 earnings name. Throughout his opening remarks, the CEO particularly identified that Tesla Vitality is part of the corporate’s enterprise that’s steadily exhibiting increasingly power — a lot in order that it’s changing into Tesla’s highest-margin enterprise.
“Relating to power storage, we deployed 4 GWh of power storage merchandise in Q3. And as this enterprise grows, the Vitality division is changing into our highest-margin enterprise. Vitality and repair now contribute over half a billion to quarterly revenue,” Musk mentioned.
Whereas Musk has proven an inclination to turn out to be overly optimistic about initiatives like Full Self Driving and Autopilot, his feedback about Tesla Vitality changing into a high-margin enterprise make excellent sense. Tesla’s Vitality Storage gadgets, in any case, are far less complicated to design and produce than the corporate’s electrical automobiles. Thus, they’re probably simpler to ramp.
Tesla CFO Vaibhav Taneja offered further insights concerning the progress of Tesla Vitality in the course of the third quarter. He talked about that the enterprise’ progress is essentially because of the Megapack’s ramp. Such statements make sense contemplating the fixed stream of Megapacks being noticed throughout drone flyovers of the Lathrop Megafactory.
“Our different companies have gotten extra distinguished on a stand-alone foundation, with the Vitality enterprise main the cost primarily from the expansion in Megapack deployments. Our companies and different companies, on a year-on-year foundation, additionally continued to point out constructive momentum as we profit from our rising fleet,” Taneja mentioned.
Try our protection of Tesla’s Q3 2023 Replace Letter right here.
Try our Dwell Weblog, which incorporates our reside protection of the occasion, right here.
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